TPD Superannuation Tax Calculator
A TPD payout should give you peace of mind — not a tax shock. Get a clear, personalised estimate of the tax on your claim in under 60 seconds, then speak with a specialist who can help you keep more of what's yours.
- Free, confidential and obligation-free
- Built with AFSL-authorised financial advisers
- Average client saves $24,000+ in unnecessary tax
When were you born?
Your age at the date of payment changes the tax rate that applies.
How is tax calculated on a TPD claim?
When a Total and Permanent Disability benefit is paid from a superannuation fund as a lump sum, the ATO splits the payment into two parts: a tax-free component and a taxable component. The taxable portion is then taxed at a concessional rate if you're under your preservation age — or potentially tax-free if you've reached 60.
1. Tax-free uplift
An uplift is applied based on your service period and the days remaining until age 65.
2. Taxable component
Whatever's left after the uplift is the amount the ATO can tax.
3. Concessional rate
Typically 22% (incl. Medicare) under preservation age, often nil from 60.
Common questions about TPD tax
Do I pay tax on a TPD payout if I'm over 60?+
If your benefit is paid from a taxed super fund and you've reached age 60, the lump sum is generally received tax-free.
What is the tax-free uplift on a disability super benefit?+
The ATO allows an uplift that increases your tax-free component, calculated using your service days versus the days until age 65. This is often the single biggest lever in reducing TPD tax.
Should I take my TPD claim as a lump sum or income stream?+
It depends on your age, debts, and family situation. A licensed adviser can model both options against your goals before you decide.
Is this calculator a substitute for advice?+
No — it's a guide based on the figures you enter. Personal advice from an AFSL-authorised adviser is the only way to confirm your exact tax position.
Meet your adviser
Luke Muir
Luke Muir is a financial planner who specialises in TPD claims financial advice, super, and retirement planning. Luke has been providing financial advice to clients for over 16 years. His team helps clients in all Australian states and territories.
Free, no-obligation conversation about how financial advice could help you.
Ready to know exactly what you'll keep?
Run the calculator above, then talk it through with a specialist — at no cost.
Start the calculatorPrefer to call? 07 3118 1760